If passed, the legislation would make a company's contribution of up to $5,250 per year tax-exempt

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Updated: 4:25 PM EST Mar 8, 2017

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WEBVTT CRYSTAL: ONE WEEK INTO THE 2017TH SESSION, FRESHMAN LAWMAKERMICKEY DOLLENS ALREADY HAS HISFIRST PIECE OF LEGISLATIONHEADED TO THE HOUSE FLOOR.A BILL THAT WOULD GIVE STUDENTLOAN FORGIVENESS TO ANY HIGHSCHOOL TEACHER WHO STAYS INOKLAHOMA FOR AT LEAST 7 YEARS.>> AS A FORMER TEACHER I SAWATTRITION RATES AND HOWDEVASTATING IT WAS TO THESTABILITY OF A SCHOOL AND HOWHARD IT WAS ON ADMINISTRATOR THE-- ADMINISTRATORS.CRYSTAL: THE ONLY QUESTION ISHOW WILL THE STATE WILL PAY FORIT.DOLLENS SAYS IT WILL DEPEND ONFUNDING WITHIN THE STATEDEPARTMENT OF HIGHER EDUCATION.FOR NOW, IT IS IMPORTANT TOESTABLISH THE FRAMEWORK THENFILL IT IN ONCE REVENUE ISCREATED.A RECENTLY ELECTED MEMBER OFWHAT SOME CALL THE TEACHERCAUCUS, DOLLENS SAYS IT'S A STEPIN THE RIGHT DIRECTION.>> WE REALLY WANT TEACHERS TO

New bill could help companies pay off employee student loans

If passed, the legislation would make a company's contribution of up to $5,250 per year tax-exempt

A new bill could help companies pay off their employees' student loans. Earlier this week, a bipartisan group of 31 lawmakers sponsored legislation that would encourage employers to give their workers money to chip away at their student debt.

The bill would make contributions to student loan payments tax deductible -- similar to contributions made to workers' 401(k)s.

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"Some companies are already offering this benefit because they see the advantage it gives them when recruiting and retaining younger employees, but we want to encourage more to participate so we can help both struggling graduates and our economy," said Representative Rodney Davis, a Republican from Illinois who introduced the bill along with Representative Scott Peters, a Democrat from California.

Total US student debt has reached a staggering $1.28 trillion, with 44.2 million Americans paying back education loans.

The average 2016 college graduate owes $37,172 in student debt - a significant increase from 2008, when public college graduates owed an average of $25,500 and private, nonprofit college graduates owed $32,300.

Consulting firm PwC was one of the first companies to start offering a student loan benefit last year. The company gives new employees $1,200 a year toward their loans for up to six years.

Companies like Fidelity, Prudential, Staples, Aetna, Live Nation, and Natixis Global Asset Management have launched student debt programs. But only four percent of businesses offer student loan repayment benefits, according to the Society for Human Resource Management. They have an average maximum benefit of about $4,400 a year.

If passed, the legislation would make a company's contribution of up to $5,250 per year tax-exempt.